Bakkt Holding, a Georgia-based digital asset service provider has released its 2022 fourth-quarter report where it posted a revenue of $15.6 million, a figure slightly below its $16 million projection.
According to the company’s report, even though its revenue fell short of projections it still represented a 14% increase year-over-year.
During this period, the cost of its operations stood at $341 million representing a 300% jump from $86 million which was the figure for the same period in the previous year. All of these expenses were primarily driven by intangible assets impairment charges worth about $272 million which weighed heavily on the company.
With a negative $30.5 million, the full-year 2022 earnings report also revealed that its EBITDA (earnings before interest, tax, depreciation, and amortization) also did not meet its estimate of a negative $28 million, however, this figure came in at 30.3% higher than its fourth quarter for the previous year.
Recall that in its third Q3 2022 report, the digital asset provider said with $182 million its assets conversion volume increased by 73% year over year due to loyalty redemption related to increased travel activity. During this period, its adjusted EBITDA decreased 27% year over year due to higher operating expenses.
Bakkt CEO Shares Roadmap for the Year
Gavin Michael, the President, and CEO of Bakkt also shared a roadmap geared towards enabling the firm to become one of the best crypto companies when the market conditions improve.
According to the CEO, the firm will introduce initiatives that will drive crypto to utility and enable new ways to earn, reward, and pay. It also plans to leverage existing partners to extend into new international markets.
Meanwhile, in a bid to provide services that include execution, clearing, custody, cost basis, and tax services to Fintech, Neobanks, and trading app platforms, Bakkt Holding paid $200 million in agreement with Apex fintech Solution to acquire Apex crypto. Although the deal is still subject to approval, it is expected to be completed before the first half of 2023.
Conclusively, the CEO said he’s satisfied with the company’s latest Q4 earnings report adding that it added new players to its network and delivered on its product roadmap despite difficult market conditions.